Committee to decide on UAE industries open to full foreign ownership:
"The UAE’s new law enabling foreigners to own 100 percent of onshore companies will be limited to specific industries deemed essential to the country’s economy, according to a senior government official.
Abdulla Al-Saleh, undersecretary for foreign trade & industry at the UAE’s Ministry of Economy, told Bloomberg that a final decision had not been taken on what industries to include in this week’s landmark decision to allow foreigners to fully own non-free zone companies.
Al-Saleh said a committee — made up of representatives of the country’s seven emirates — would make a decision on which industries to initially include, and would add further industries and companies in the future."
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Thursday, 24 May 2018
Financial crime leads to billions of lost business in Middle East, survey finds
Financial crime leads to billions of lost business in Middle East, survey finds:
"Middle Eastern companies are losing billions of dollars in business opportunities because of fears about financial crime, according to a Thomson Reuters survey published on Thursday. Concern about the possibility of severe financial and reputational damage due to regulatory breaches leads foreign investors and firms to shun companies and entire regions where they see “heightened risk.” In the Middle East and North Africa (MENA), 77 percent of survey respondents said that they deliberately avoided customers, suppliers, countries or industries which they viewed as most exposed to financial crime."
'via Blog this'
"Middle Eastern companies are losing billions of dollars in business opportunities because of fears about financial crime, according to a Thomson Reuters survey published on Thursday. Concern about the possibility of severe financial and reputational damage due to regulatory breaches leads foreign investors and firms to shun companies and entire regions where they see “heightened risk.” In the Middle East and North Africa (MENA), 77 percent of survey respondents said that they deliberately avoided customers, suppliers, countries or industries which they viewed as most exposed to financial crime."
'via Blog this'
KPMG Is Said to Review Its Audits of Dubai Buyout Firm Abraaj - Bloomberg
KPMG Is Said to Review Its Audits of Dubai Buyout Firm Abraaj - Bloomberg:
"KPMG LLP is conducting an internal review into its audits of embattled Middle East buyout firm Abraaj Group following the alleged misuse of money, according to people with knowledge of the matter. The accounting firm’s U.K. branch is looking into its examination of Abraaj and its related companies for any potential irregularities in the valuation of assets by KPMG’s Middle East division, the people said, asking not to be identified because the information is private. KPMG is also studying its examination of Abraaj’s $1 billion health-care fund, which was completed in February, they said. The reviews are ongoing and the outcome isn’t clear, the people said. While KPMG said it couldn’t comment on the specifics of the matter because of client confidentiality, a spokesman added that KPMG has taken steps to ensure that investors in the fund have had the opportunity to receive a copy of the KPMG U.A.E. report from February to “see for themselves what it says.”"
'via Blog this'
"KPMG LLP is conducting an internal review into its audits of embattled Middle East buyout firm Abraaj Group following the alleged misuse of money, according to people with knowledge of the matter. The accounting firm’s U.K. branch is looking into its examination of Abraaj and its related companies for any potential irregularities in the valuation of assets by KPMG’s Middle East division, the people said, asking not to be identified because the information is private. KPMG is also studying its examination of Abraaj’s $1 billion health-care fund, which was completed in February, they said. The reviews are ongoing and the outcome isn’t clear, the people said. While KPMG said it couldn’t comment on the specifics of the matter because of client confidentiality, a spokesman added that KPMG has taken steps to ensure that investors in the fund have had the opportunity to receive a copy of the KPMG U.A.E. report from February to “see for themselves what it says.”"
'via Blog this'
Oil Falls Most in Two Weeks as Phase Out of Supply Cuts Looms - Bloomberg
Oil Falls Most in Two Weeks as Phase Out of Supply Cuts Looms - Bloomberg:
"Oil prices slid the most in more than two weeks after Russia signaled that phasing out historic supply curbs that eliminated a worldwide glut may be on the table. West Texas Intermediate futures fell 1.6 percent on Thursday, extending the pullback from a three-year high. Russia and the Organization of Petroleum Exporting Countries will discuss whether it’s appropriate to scale back output cuts, Russian Energy Minister Alexander Novak said in St. Petersburg, adding that Russia and Saudi Arabia agree market conditions will dictate any decision. Russia and allied oil producers are broaching the possibility of easing output limits at a time when American shale drillers are pumping record amounts of crude. Still, the dual threat of supply disruptions from Iran and Venezuela -- which together account for about 14 percent of OPEC’s production -- may arrest any steep price slide."
'via Blog this'
"Oil prices slid the most in more than two weeks after Russia signaled that phasing out historic supply curbs that eliminated a worldwide glut may be on the table. West Texas Intermediate futures fell 1.6 percent on Thursday, extending the pullback from a three-year high. Russia and the Organization of Petroleum Exporting Countries will discuss whether it’s appropriate to scale back output cuts, Russian Energy Minister Alexander Novak said in St. Petersburg, adding that Russia and Saudi Arabia agree market conditions will dictate any decision. Russia and allied oil producers are broaching the possibility of easing output limits at a time when American shale drillers are pumping record amounts of crude. Still, the dual threat of supply disruptions from Iran and Venezuela -- which together account for about 14 percent of OPEC’s production -- may arrest any steep price slide."
'via Blog this'
Exclusive: Saudi Binladin Group to be slimmed down, renamed: sources | Reuters
Exclusive: Saudi Binladin Group to be slimmed down, renamed: sources | Reuters:
"Saudi Binladin Group will be slimmed down and renamed, six sources familiar with the matter said, after the government seized management control of the construction giant from family members that were swept up in an anti-graft drive. The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent. The company, crucial to the state’s plans for major tourism and infrastructure projects, is now being run by a five-member committee appointed by the government to oversee the shake-up."
'via Blog this'
"Saudi Binladin Group will be slimmed down and renamed, six sources familiar with the matter said, after the government seized management control of the construction giant from family members that were swept up in an anti-graft drive. The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent. The company, crucial to the state’s plans for major tourism and infrastructure projects, is now being run by a five-member committee appointed by the government to oversee the shake-up."
'via Blog this'
MIDEAST STOCKS-Qatar market up on foreign ownership hopes, other markets flat | Reuters
MIDEAST STOCKS-Qatar market up on foreign ownership hopes, other markets flat | Reuters:
"Qatari stocks led regional gains on Thursday after the government announced it was moving ahead with a draft law to allow full foreign ownership of companies.
Qatar’s index rose 0.6 percent, despite lingering questions about how the plan differed from a similar draft law proposed in 2016. Non-Qatari investors would still be limited to 49 percent stakes in listed companies.
Gains were led by Qatar Islamic Bank, which rose 2.1 percent."
'via Blog this'
"Qatari stocks led regional gains on Thursday after the government announced it was moving ahead with a draft law to allow full foreign ownership of companies.
Qatar’s index rose 0.6 percent, despite lingering questions about how the plan differed from a similar draft law proposed in 2016. Non-Qatari investors would still be limited to 49 percent stakes in listed companies.
Gains were led by Qatar Islamic Bank, which rose 2.1 percent."
'via Blog this'
Nasdaq Dubai's move to offer Saudi futures welcomed by market analysts | ZAWYA MENA Edition
Nasdaq Dubai's move to offer Saudi futures welcomed by market analysts | ZAWYA MENA Edition:
"The announcement by Nasdaq Dubai on Monday that it will begin offering futures contracts on some of Saudi Arabia's biggest stocks has been welcomed by market participants, who have told Zawya that they expect trading in these to be more robust than the futures trades that have so far taken place with stocks in the United Arab Emirates.
Nasdaq Dubai announced on Monday that it "is preparing to launch equity futures on leading companies listed in Saudi Arabia" in the third quarter of 2018, but did not give an exact date.
It said in a press statement that futures contracts would be offered on "some of the Middle East’s largest businesses active in sectors including petrochemicals, real estate, banking and transport", but did not name the firms for whom futures contracts will be created."
'via Blog this'
"The announcement by Nasdaq Dubai on Monday that it will begin offering futures contracts on some of Saudi Arabia's biggest stocks has been welcomed by market participants, who have told Zawya that they expect trading in these to be more robust than the futures trades that have so far taken place with stocks in the United Arab Emirates.
Nasdaq Dubai announced on Monday that it "is preparing to launch equity futures on leading companies listed in Saudi Arabia" in the third quarter of 2018, but did not give an exact date.
It said in a press statement that futures contracts would be offered on "some of the Middle East’s largest businesses active in sectors including petrochemicals, real estate, banking and transport", but did not name the firms for whom futures contracts will be created."
'via Blog this'
Russia and Saudi to discuss response to oil rally
Russia and Saudi to discuss response to oil rally:
"Russia and Saudi Arabia will discuss how to respond to the recent spike in global oil prices, Russia’s energy minister has said, adding that the two countries, which have brokered a global oil production deal, held a “common position”. Ahead of the US’s withdrawal from the Iranian nuclear deal, the Trump administration had held discussions with big producer countries, widely believed to have included Saudi Arabia, about stepping in to alleviate any market shortage and price spikes stemming from a drop in Iranian exports. “I think we have a common position here with our colleagues from Saudi Arabia, as before we have to look at the situation on the market, we have all the tools for responding and making decisions, so we just need to look, assess, exchange opinions - what is the current the situation, what is the forecast for three to six months,” Alexander Novak told reporters."
'via Blog this'
"Russia and Saudi Arabia will discuss how to respond to the recent spike in global oil prices, Russia’s energy minister has said, adding that the two countries, which have brokered a global oil production deal, held a “common position”. Ahead of the US’s withdrawal from the Iranian nuclear deal, the Trump administration had held discussions with big producer countries, widely believed to have included Saudi Arabia, about stepping in to alleviate any market shortage and price spikes stemming from a drop in Iranian exports. “I think we have a common position here with our colleagues from Saudi Arabia, as before we have to look at the situation on the market, we have all the tools for responding and making decisions, so we just need to look, assess, exchange opinions - what is the current the situation, what is the forecast for three to six months,” Alexander Novak told reporters."
'via Blog this'
UAE reboot raises concerns over ownership and tax | Arab News
UAE reboot raises concerns over ownership and tax | Arab News:
"At the iftar gathering held by the Dubai Media Office this week, all the conversation was about the big changes to the UAE’s visa and corporate structure announced a few days before, which were heralded as a “reboot” for the country’s economy and business environment.
It was on the mind of Sheikh Mohammed bin Rashid Al-Maktoum, prime minister of the UAE and ruler of Dubai, who has taken the lead in promoting the new measures. “Do you think it will work?” he asked when an iftar guest congratulated him on the initiatives.
It would have been a brave man or woman who answered “no,” but away from the formalities, there was much talk among expatriates and Emiratis about the pros and cons of the proposals, and the challenges they present for business in the UAE."
'via Blog this'
"At the iftar gathering held by the Dubai Media Office this week, all the conversation was about the big changes to the UAE’s visa and corporate structure announced a few days before, which were heralded as a “reboot” for the country’s economy and business environment.
It was on the mind of Sheikh Mohammed bin Rashid Al-Maktoum, prime minister of the UAE and ruler of Dubai, who has taken the lead in promoting the new measures. “Do you think it will work?” he asked when an iftar guest congratulated him on the initiatives.
It would have been a brave man or woman who answered “no,” but away from the formalities, there was much talk among expatriates and Emiratis about the pros and cons of the proposals, and the challenges they present for business in the UAE."
'via Blog this'
The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg
The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg:
"Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under former Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions related to 1MDB. Najib was ousted from power in a May general election as the scandal contributed a voter backlash, ending his party’s 61 years of rule.
1. What is 1MDB?
It’s a government investment company -- full name, 1Malaysia Development Bhd. -- that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment."
'via Blog this'
"Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under former Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions related to 1MDB. Najib was ousted from power in a May general election as the scandal contributed a voter backlash, ending his party’s 61 years of rule.
1. What is 1MDB?
It’s a government investment company -- full name, 1Malaysia Development Bhd. -- that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment."
'via Blog this'
Saudi billionaires' pockets hit after corruption crackdown - survey | ZAWYA MENA Edition
Saudi billionaires' pockets hit after corruption crackdown - survey | ZAWYA MENA Edition:
"The Middle East's billionaire population continued to rise last year, but those residing in Saudi Arabia took a hit to their income as the government rounded up key business and political figures in a crackdown on alleged corruption, according to a new report. The annual Billionaire Census produced by research consultancy Wealth-X found that the number of billionaires in the Middle East and North Africa grew to 189 (up 11.9 percent) in 2017, and that the wealth these individuals possess also grew by 2.1 percent to $474 billion. Both the United Arab Emirates and Saudi Arabia were among the top 10 nations for billionaire populations last year (joint ninth, with 62 billionaires each), and Dubai was one of the world's top cities where billionaires reside (ranked 8th, above Mumbai but below Singapore). However, while the combined wealth of those in the UAE grew by 4.3 percent, Saudi billionaires' wealth declined by 4.4 percent."
'via Blog this'
"The Middle East's billionaire population continued to rise last year, but those residing in Saudi Arabia took a hit to their income as the government rounded up key business and political figures in a crackdown on alleged corruption, according to a new report. The annual Billionaire Census produced by research consultancy Wealth-X found that the number of billionaires in the Middle East and North Africa grew to 189 (up 11.9 percent) in 2017, and that the wealth these individuals possess also grew by 2.1 percent to $474 billion. Both the United Arab Emirates and Saudi Arabia were among the top 10 nations for billionaire populations last year (joint ninth, with 62 billionaires each), and Dubai was one of the world's top cities where billionaires reside (ranked 8th, above Mumbai but below Singapore). However, while the combined wealth of those in the UAE grew by 4.3 percent, Saudi billionaires' wealth declined by 4.4 percent."
'via Blog this'
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters:
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters:
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
MIDEAST STOCKS-Gulf moves little early on, DXBE continues rebound in Dubai | Reuters
MIDEAST STOCKS-Gulf moves little early on, DXBE continues rebound in Dubai | Reuters:
"Gulf stock markets moved little in early trade on Thursday but in Dubai amusement park operator DXB Entertainments continued a rebound from record lows in heavy trade. The stock has been on a downtrend for almost two years because of losses suffered by the company and worse-than-expected attendance numbers. But it rose 3.4 percent to 0.424 dirham on Thursday morning, bringing its gains over the last four days to 16.5 percent. The median target price of seven analysts covering the stock is 0.73 dirham, according to Thomson Reuters data. The strength of DXB Entertainments helped the Dubai stock index rise 0.2 percent but most of the rest of the market was sluggish. Dubai property developers surged early this week after the United Arab Emirates cabinet decided to grant residency visas of up to 10 years to investors and some professionals. But the stocks have since lost momentum because of a lack of details of the plan, and uncertainty over whether it will make much difference to demand for local property. In Abu Dhabi, the index climbed 0.3 percent as energy investment firm TAQA jumped 6.6 percent; it is up 136 percent year-to-date on the back of strong oil prices."
'via Blog this'
"Gulf stock markets moved little in early trade on Thursday but in Dubai amusement park operator DXB Entertainments continued a rebound from record lows in heavy trade. The stock has been on a downtrend for almost two years because of losses suffered by the company and worse-than-expected attendance numbers. But it rose 3.4 percent to 0.424 dirham on Thursday morning, bringing its gains over the last four days to 16.5 percent. The median target price of seven analysts covering the stock is 0.73 dirham, according to Thomson Reuters data. The strength of DXB Entertainments helped the Dubai stock index rise 0.2 percent but most of the rest of the market was sluggish. Dubai property developers surged early this week after the United Arab Emirates cabinet decided to grant residency visas of up to 10 years to investors and some professionals. But the stocks have since lost momentum because of a lack of details of the plan, and uncertainty over whether it will make much difference to demand for local property. In Abu Dhabi, the index climbed 0.3 percent as energy investment firm TAQA jumped 6.6 percent; it is up 136 percent year-to-date on the back of strong oil prices."
'via Blog this'
The $100 a Barrel Oil Wager Comes Back to the Options Market - Bloomberg
The $100 a Barrel Oil Wager Comes Back to the Options Market - Bloomberg:
"Some options traders are betting on $100 oil again.
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months."
'via Blog this'
"Some options traders are betting on $100 oil again.
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months."
'via Blog this'
Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle - Bloomberg
Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle - Bloomberg:
"Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock. A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year. The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index."
'via Blog this'
"Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock. A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year. The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index."
'via Blog this'
U.A.E. Foreign Ownership Law May Be More Limited Than You Think - Bloomberg
U.A.E. Foreign Ownership Law May Be More Limited Than You Think - Bloomberg:
"A landmark law that will allow foreign investors to own 100 percent of companies in the United Arab Emirates will be limited to specific industries deemed essential to the second-biggest Arab economy, a government official said on Wednesday.
Authorities are still weighing what industries are to be included in the law, and the decision will be based on factors such as the ability to create jobs and transfer technology, according to Abdulla Al Saleh, undersecretary for foreign trade & industry at the Economy Ministry.
Presently, foreigners can fully own a company if it’s located in a free zone. The changes, which also include offering some foreigners long-term residency permits, will take effect by the end of this year, the government said on Sunday."
'via Blog this'
"A landmark law that will allow foreign investors to own 100 percent of companies in the United Arab Emirates will be limited to specific industries deemed essential to the second-biggest Arab economy, a government official said on Wednesday.
Authorities are still weighing what industries are to be included in the law, and the decision will be based on factors such as the ability to create jobs and transfer technology, according to Abdulla Al Saleh, undersecretary for foreign trade & industry at the Economy Ministry.
Presently, foreigners can fully own a company if it’s located in a free zone. The changes, which also include offering some foreigners long-term residency permits, will take effect by the end of this year, the government said on Sunday."
'via Blog this'
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